Wang Jianlin made billions speculating on Chinese real-estate; now that he's diversified into buying Hollywood movie studios and chains of movie theaters, the richest man in China is prepared to say what many have known: the Chinese property market is a huge, deadly bubble that's ripe to burst.
The issue is the huge buildout of commercial properties in secondary and tertiary cities -- developments for which there is no demand, created solely to absorb speculators' capital with the promise of quick flips to other, dumber speculators.
The big problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty.
"I don't see a good solution to this problem," he said. "The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked."
It's a serious worry in China, where the economy is slowing at the same time as high debt levels continue to increase rapidly. There are massive sums at stake in the real estate market: direct loans to the sector stood at roughly 24 trillion yuan ($3.6 trillion) at the end of June, according to Capital Economics.
Billionaire: Chinese real estate is 'biggest bubble in history'
[Jethro Mullen and Andrew Stevens/CNN Money]
(via Naked Capitalism)
As the death toll from the novel coronavirus 2019-nCoV outbreak escalates, the White House is discussing a possible China travel ban, reports NBC News and other organizations on Tuesday morning.
The UK will allow China’s Huawei to build what are described as ‘non-core’ elements of a British 5G network, but the Chinese company is not allowed to operate at what are defined by the government as sensitive sites.
Documents show that the antivirus company Avast has been selling its users’ internet browsing data, through a subsidiary named Jumpshot, to clients that include Pepsi, Google, and Microsoft, reports Motherboard. The report is the result of a joint investigation between the VICE News site and PC Mag.
You don’t need to be a climate scientist in order to know that the Earth is in serious trouble, but the good news is that you also don’t need to necessarily make any drastic changes to your lifestyle in order to do your part to help. This nOcean Wearable Reusable Silicone Straw will help you […]
When it comes to conquering that resolution list and hitting all of your goals in 2020, nothing is more important than getting a great night’s sleep every night so you can wake up feeling refreshed and extra productive. The CarbonIce: 7-in-1 Bacteria Protection & Cooling Pillow will help you do just that, and right now […]
It’s no secret that business leaders and project managers require a certain set of skills in order to outpace the competition and increase the overall efficiency of their company or team. The Lean Six Sigma Expert Training Bundle will take your managerial skills to the next level through training that will help you earn some […]